Cash lock-up clause in water company licences (MD218)

Ofwat notice that it intends to introduce a cash lock-up provision in company licences as and when opportunities arise. This would prohibit transfers out of the licensed entity when its credit rating goes below a certain threshold.

Ofwat has also announced its intention (4 pages, PDF) to take advantage of the forthcoming sale or flotation of Thames Water to introduce such a cash lock-up provision in its licence.

For further information or advice please contact Franck Latrémolière.

Filed under Ofwat, Water.

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